ANZ executives turn from ERP upgrades to agentic AI

Executives in Australia and New Zealand are ramping up investment in artificial intelligence and automation while struggling with rising costs, talent shortages and rigid software roadmaps, according to new research from Rimini Street.

The survey of nearly 4,300 C-suite leaders worldwide included 350 respondents across Australia and New Zealand. It examined how boards and senior executives set technology priorities and evaluate spending.

The findings show AI and automation have moved to the top of the five-year agenda for ANZ leaders. Cybersecurity, compliance and cost control still dominate near-term plans.

Rimini Street said C-suites are recalibrating strategies around AI, automation and resilience. It said boards are increasing pressure for faster innovation and clearer business outcomes.

Across ANZ, 99% of respondents said their current enterprise resource planning systems largely meet business needs. The study said organisations still spend about 23% of workforce time on maintaining these systems. This limits the time available for new projects.

Executives in the region reported rising frustration with vendor-directed ERP roadmaps and mandatory upgrades. Many said these programmes divert budget away from data, automation and AI initiatives.

The research pointed to a shift in attitude toward ERP investment. ANZ leaders want lower spending on upgrades that they consider costly. They want more budget for automation, AI and resilience initiatives. They also want greater flexibility in how they modernise systems.

AI at the centre

Globally, 44% of leaders identified AI and automation as the most important technologies for both short and long-term IT initiatives. Among CIOs, 46% named AI and automation as their top five-year priority. Among CEOs, the figure was 43%.

More than a third of global respondents, 35%, said they intend to shift their organisations into data-driven businesses over the next five years. Many see AI and automation as part of that plan. Many also see a need for stronger business continuity and broader skills development.

Rimini Street said many C-suites seek models it describes as composable and agentic AI-enabled ERP. These models extend the life of existing systems. They also release internal teams from routine maintenance.

Nearly 70% of C-suite leaders do not expect traditional ERP architectures to dominate in future. About a third, 33%, said they see Agentic ERP, which uses AI-driven decision-making, as the likely model.

"As economic and operational pressures intensify, executives are taking a far more disciplined approach to technology investment. The findings clearly show that organisations want measurable results, faster payback cycles and far more flexibility in how they allocate their budgets," said Michael Perica, Chief Financial Officer, Rimini Street. "A business-driven enterprise software roadmap - not one dictated by vendors - puts leaders in control of where and when they invest. This allows them to redirect resources from costly, low-ROI activities toward initiatives like agentic AI, that will improve efficiency, strengthen resilience and support long-term growth and innovation."

Rising ROI demands

The report said C-suites most often collaborate with CIOs, at 31%, and CEOs, at 27%, on IT initiatives. It said there is scope for earlier CFO involvement as scrutiny on returns increases.

Leaders expect around 27% of project payback within one to two years. They expect 37% within three to five years. They expect nearly half, 48%, of total ROI after six years.

CISOs reported similar timelines. They placed slightly more weight on direct financial benefits. The data suggests growing pressure to focus on projects with long-term impact and predictable costs.

Talent squeeze

The research highlighted skills shortages as a major constraint on growth and innovation. In ANZ, 93% of respondents said IT talent shortages affect their technology vision. They cited skills gaps as a barrier to growth and project delivery.

Globally, 36% of C-suite leaders said skills gaps limit their ability to pursue growth. About 23% said project delays are a growing concern because of insufficient talent.

Across the worldwide sample, 98% of executives said IT talent shortages affect their ability to realise their technology plans. Among these, 68% described the impact as significant.

Although 97% said their ERP systems largely meet business needs, many cited limited vendor support as an issue. Internal teams often spend more time on maintenance. Strategic projects then move more slowly.

As a result, 99% of respondents are outsourcing key IT services. The main areas are cybersecurity, infrastructure and application support. Executives said this supplements internal teams and reduces operational risk.

Risk and resilience

Every ANZ respondent listed risk reduction as a top priority. They cited cybersecurity threats, supply chain disruption and economic volatility as drivers.

Globally, 69% of leaders expect significant change in their ERP investments in the coming years. Many are re-evaluating vendor relationships and support models.

Every global respondent said business risk reduction is a top priority this year. Many reported higher spending on business continuity planning. Many are also securing alternative suppliers and augmenting their workforce.

Vendor lock-in remains a concern. About 35% of C-suites cited forced upgrades, lack of flexibility and high costs as barriers to long-term technology goals.

Rimini Street said the survey shows a shift in how executives view core systems. It said the traditional ERP model is under review as organisations test new approaches.

"The traditional ERP model is being reimagined as new technologies like agentic AI redefine expectations for speed, flexibility and intelligence," said Joe Locandro, Global Chief Information Officer, Rimini Street. "Executives want the freedom to modernise and innovate on their own terms, without being locked into vendor-driven upgrade cycles that consume budget without delivering proportional value. By stabilising and maximising the ERP foundation already in place, organisations can redirect time and resources toward strategic AI-driven initiatives that generate more meaningful results."